LifeStance Reports Strong Third Quarter 2026 Financial Results and Raises Full Year Outlook
Nine-month common-stock repurchases totaled $122.430 million, while cash fell $29.824 million from the start of the year.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
LifeStance Health Group (Nasdaq: LFST) reported third-quarter 2026 revenue of $455.9 million and raised its full-year financial outlook. Revenue rose 25% year over year, while net income increased to $22.4 million from $1.1 million. Operating income reached $33.1 million, versus $7.4 million.
Visits increased 17% to 2.7 million, and the clinician base grew 11% to 8,863. Adjusted EBITDA, a supplemental earnings measure, rose 70% to $68.4 million. Operating cash flow was $37.0 million, with free cash flow of $22.4 million.
LifeStance now expects 2026 revenue of $1.741 billion to $1.761 billion, Center Margin of $599 million to $613 million, and adjusted EBITDA of $242 million to $250 million. Center Margin measures operating income before depreciation, amortization and general administrative expenses. Fourth-quarter revenue is expected to be $446 million to $466 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook raised to $1.741 billion–$1.761 billion, reflecting the company's higher expectations.
- Moderate pointQ3 revenue rose 25% to $455.9 million, compared with $363.8 million a year earlier.
- Moderate pointQ3 net income reached $22.4 million, versus $1.1 million; net margin increased to 4.9% from 0.3%.
- Moderate pointQ3 operating income increased to $33.1 million from $7.4 million; operating margin reached 7.3%, versus 2.0%.
- Moderate pointQ3 visits increased 17% to 2.7 million, supporting revenue growth.
- Moderate pointClinician base increased 11% to 8,863, including a sequential net increase of 321 in Q3.
- Moderate pointQ3 Center Margin increased 38% to $161.4 million, reaching 35.4% of revenue versus 32.0%.
- Moderate pointQ3 adjusted EBITDA increased 70% to $68.4 million; its revenue margin rose to 15.0% from 11.1%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue expected at $446 million–$466 million by LifeStance.
- Moderate pointQ3 operating cash flow totaled $37.0 million, with free cash flow of $22.4 million.
16 minor points
- Minor pointQ3 diluted earnings per share increased to $0.06 from $0.00 a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 Center Margin outlook raised to $599 million–$613 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA outlook raised to $242 million–$250 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 Center Margin expected at $149 million–$163 million by LifeStance.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 adjusted EBITDA expected at $56 million–$64 million by LifeStance.
- Minor pointNine-month operating cash flow increased to $170.037 million from $88.591 million a year earlier.
- Minor pointNine-month revenue increased to $1,294.694 million from $1,042.090 million.
- Minor pointNine-month net income reached $60.240 million, versus a $2.005 million loss.
- Minor pointNine-month diluted EPS reached $0.15, versus a $0.01 loss per share.
- Minor pointNine-month operating income increased to $86.014 million from $6.064 million.
- Minor pointNine-month Center Margin increased to $450.375 million from $334.804 million.
- Minor pointNine-month adjusted EBITDA increased to $185.509 million from $108.860 million.
- Minor pointCommon-stock repurchases totaled $122.430 million in the first nine months of 2026.
- Minor pointLong-term debt, net, declined to $255.524 million from $265.927 million at December 31, 2025.
- Minor pointQ3 net interest expense declined to $2.491 million from $2.814 million.
- Minor pointNine-month stock-based compensation declined to $53.117 million from $57.997 million.
Negative
- Moderate pointQ3 center costs increased to $294.462 million from $247.227 million, excluding depreciation and amortization.
- Minor pointCash declined $29.824 million during the first nine months, ending September at $218.818 million.
- Minor pointQ3 general and administrative expenses increased to $113.389 million from $95.615 million.
- Minor pointQ3 depreciation and amortization increased to $14.936 million from $13.557 million.
- Minor pointQ3 contingent-consideration remeasurement loss was $2.339 million, versus none a year earlier.
5 minor points
- Minor pointQ3 transaction costs were $510,000, versus none a year earlier, primarily related to selling-stockholder offerings.
- Minor pointQ3 strategic-initiative costs totaled $1.741 million, versus none a year earlier.
- Minor pointNine-month property and equipment purchases increased to $37.415 million from $25.214 million.
- Minor pointBusiness acquisitions used $9.590 million in nine-month cash, with $3.983 million of contingent consideration incurred.
- Minor pointEquity-award settlement taxes used $24.919 million in nine-month cash, versus $8.607 million.
News Explained
At
Key Figures
- Revenue
- $455.9 million
- Q3 2026; increased 25% year over year
- Net income
- $22.4 million
- Q3 2026; compared with $1.1 million in Q3 2025
- Center Margin
- $161.4 million
- Q3 2026; grew 38%
- Adjusted EBITDA
- $68.4 million
- Q3 2026; increased 70%
- FY 2026 revenue outlook
- $1.741 billion to $1.761 billion
- Raised full-year outlook
- FY 2026 Center Margin outlook
- $599 million to $613 million
- Raised full-year outlook
- FY 2026 Adjusted EBITDA outlook
- $242 million to $250 million
- Raised full-year outlook
- Q4 2026 revenue outlook
- $446 million to $466 million
- Company outlook for the fourth quarter of 2026
Previous Earnings Reports
-
Raised 2026 guidance again after Q2 revenue and Adjusted EBITDA growth.
-
Reported Q1 revenue growth, positive net income, and raised full-year revenue and EBITDA guidance.
-
Reported Q4 and full-year 2025 results, with 2026 revenue and EBITDA guidance.
-
Reported Q3 2025 revenue and EBITDA growth, with full-year EBITDA guidance raised.
-
Reported Q2 2025 revenue growth and raised Adjusted EBITDA outlook while narrowing net loss.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
free cash flow financial
operating leverage financial
tms medical
ehr technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
SCOTTSDALE, Ariz., Nov. 05, 2026 (GLOBE NEWSWIRE) -- LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s largest providers of outpatient mental healthcare, today announced financial results for the third quarter ended September 30, 2026.
(All results compared to prior-year comparative period, unless otherwise noted)
Q3 2026 Highlights and FY 2026 Outlook
- Revenue of
$455.9 million increased25% compared to revenue of$363.8 million - Clinician base increased
11% to 8,863 clinicians, a sequential net increase of 321 in the third quarter - Third quarter visit volumes increased
17% to 2.7 million - Net income of
$22.4 million compared to net income of$1.1 million - Adjusted EBITDA of
$68.4 million compared to Adjusted EBITDA of$40.2 million - Net cash provided by operations of
$37.0 million in the third quarter - Free Cash Flow generation of
$22.4 million in the third quarter - For full year 2026, raising revenue expectations to
$1.741 billion to$1.761 billion , Center Margin expectations to$599 million to$613 million , and Adjusted EBITDA expectations to$242 million to$250 million
“The team delivered a tremendous quarter, with execution across the business driving results that once again exceeded our expectations,” said Dave Bourdon, CEO of LifeStance. “The strong momentum gives us the confidence to further raise our full-year 2026 outlook across all financial metrics, while our positive patient outcomes, most recently across TMS and Spravato, reflect our commitment to clinical excellence. At the same time, the investments we are making in our platform, including the implementation of our new EHR, are positioning LifeStance for continued success and scale over the long term.”
| Financial Highlights | ||||||||||||
| Q3 2026 | Q3 2025 | Y/Y | ||||||||||
| (in millions) | ||||||||||||
| Total revenue | $ | 455.9 | $ | 363.8 | 25 | % | ||||||
| Income from operations | 33.1 | 7.4 | NM | |||||||||
| Center Margin | 161.4 | 116.6 | 38 | % | ||||||||
| Net income | 22.4 | 1.1 | NM | |||||||||
| Adjusted EBITDA | 68.4 | 40.2 | 70 | % | ||||||||
| As % of Total revenue: | ||||||||||||
| Income from operations | 7.3 | % | 2.0 | % | ||||||||
| Center Margin | 35.4 | % | 32.0 | % | ||||||||
| Net income | 4.9 | % | 0.3 | % | ||||||||
| Adjusted EBITDA | 15.0 | % | 11.1 | % | ||||||||
__________________________________________
NM - not meaningful
(All results compared to prior-year period, unless otherwise noted)
- Revenue grew
25% to$455.9 million . Revenue growth in the third quarter was driven primarily by higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit. - Income from operations was
$33.1 million and net income was$22.4 million . - Center Margin grew
38% to$161.4 million , or35.4% of total revenue. - Adjusted EBITDA increased
70% to$68.4 million , or15.0% of total revenue. Adjusted EBITDA as a percentage of revenue increased in the third quarter as a result of higher total revenue per visit, lower center costs as a percentage of revenue, and improved operating leverage from revenue growing faster than general and administrative expenses.
Balance Sheet, Cash Flow, and Capital Allocation
For the nine months ended September 30, 2026, LifeStance generated
2026 Guidance
LifeStance is providing the following outlook for 2026:
- The Company is raising full year revenue to
$1.741 billion to$1.761 billion , Center Margin to$599 million to$613 million , and Adjusted EBITDA to$242 million to$250 million . - For the fourth quarter of 2026, the Company expects total revenue of
$446 million to$466 million , Center Margin of$149 million to$163 million , and Adjusted EBITDA of$56 million to$64 million .
Conference Call, Webcast Information, and Presentations
LifeStance will hold a conference call today, November 5, 2026 at 8:30 a.m. Eastern Time to discuss the third quarter 2026 results. Investors who wish to participate in the call should dial 1-800-715-9871, domestically, or 1-646-307-1963, internationally, approximately 10 minutes before the call begins and provide conference ID number 3056663 or ask to be joined into the LifeStance call. A real-time audio webcast can be accessed via the Events and Presentations section of the LifeStance Investor Relations website (https://investor.lifestance.com), where related materials will be posted prior to the conference call.
About LifeStance Health Group, Inc.
Founded in 2017, LifeStance (Nasdaq: LFST) is reimagining mental health. We are one of the nation’s largest providers of virtual and in-person outpatient mental healthcare for children, adolescents and adults experiencing a variety of mental health conditions. Our mission is to help people lead healthier, more fulfilling lives by improving access to trusted, affordable, and personalized mental healthcare. LifeStance and its supported practices employ over 8,800 psychiatrists, advanced practice nurses, psychologists and therapists and operates across 35 states and more than 575 centers. To learn more, please visit www.LifeStance.com.
We routinely post information that may be important to investors on the “Investor Relations” section of our website at investor.lifestance.com. We encourage investors and potential investors to consult our website regularly for important information about us.
Forward-Looking Statements
Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to, statements with respect to: full year and fourth quarter guidance and management's related assumptions; business plans and objectives; our share repurchase authorization and repurchases thereunder; and other statements contained in this press release that are not historical facts. When used in this press release and on the related teleconference, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: if reimbursement rates paid by third-party payors are reduced or if third-party payors otherwise restrain our ability to obtain or deliver care to patients, our business could be materially harmed; we may not grow at the rates we historically have achieved or at all, even if our key metrics may imply future growth, including if we are unable to successfully execute on our growth initiatives and business strategies; if we fail to manage our growth effectively, our expenses could increase more than expected, our revenue may not increase proportionally or at all, and we may be unable to execute on our business strategy; our ability to recruit new clinicians and retain existing clinicians; we conduct business in a heavily regulated industry and if we fail to comply with these laws and government regulations, we could incur penalties or be required to make significant changes to our operations or experience adverse publicity, which could have a material adverse effect on our business, results of operations and financial condition; we are dependent on our relationships with supported practices, which we do not own, to provide healthcare services, and our business would be harmed if those relationships were disrupted or if our arrangements with these entities became subject to legal challenges; we operate in a competitive industry, and if we are not able to compete effectively, our business and financial performance would be harmed; the impact on us of healthcare reform legislation and other changes in the healthcare industry and in healthcare spending is currently unknown, but may harm our business; if our or our vendors’ security measures fail or are breached and unauthorized access to our employees’, patients’ or partners’ data is obtained, our systems may be perceived as insecure, we may incur significant liabilities, including through private litigation or regulatory action, our reputation may be harmed, and we could lose patients and partners; our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; our existing indebtedness could adversely affect our business and growth prospects; and other risks and uncertainties set forth under “Risk Factors” included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings made with the Securities and Exchange Commission. LifeStance does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law.
Non-GAAP Financial Information
This press release contains certain non-GAAP financial measures, including Center Margin, Adjusted EBITDA, and Adjusted EBITDA margin. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance and prospects. This press release also refers to Free Cash Flow, which is calculated as net cash provided by operating activities less purchases of property and equipment. Management believes Free Cash Flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after investments in property and equipment, can be used for future growth. These non-GAAP financial measures, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, the Company’s non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP, such as net income (loss) or income from operations.
Center Margin and Adjusted EBITDA anticipated for the fourth quarter of 2026 and full year 2026 are calculated in a manner consistent with the historical presentation of these measures at the end of this release. Reconciliation for the forward-looking fourth quarter of 2026 and full year 2026 Center Margin, Adjusted EBITDA guidance and Free Cash Flow is not being provided, as LifeStance does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. As such, LifeStance management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.
Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.
| Consolidated Financial Information and Reconciliations | ||||||||
| CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except for par value) | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 218,818 | $ | 248,642 | ||||
| Patient accounts receivable, net | 120,940 | 95,710 | ||||||
| Prepaid expenses and other current assets | 37,021 | 71,848 | ||||||
| Total current assets | 376,779 | 416,200 | ||||||
| NONCURRENT ASSETS | ||||||||
| Property and equipment, net | 166,428 | 161,583 | ||||||
| Right-of-use assets | 162,395 | 149,720 | ||||||
| Intangible assets, net | 170,041 | 177,665 | ||||||
| Goodwill | 1,305,389 | 1,293,346 | ||||||
| Other noncurrent assets | 5,251 | 5,419 | ||||||
| Total noncurrent assets | 1,809,504 | 1,787,733 | ||||||
| Total assets | $ | 2,186,283 | $ | 2,203,933 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 5,502 | $ | 6,122 | ||||
| Accrued payroll expenses | 129,848 | 143,327 | ||||||
| Other accrued expenses | 60,099 | 42,187 | ||||||
| Operating lease liabilities, current | 45,039 | 45,544 | ||||||
| Other current liabilities | 20,641 | 14,782 | ||||||
| Total current liabilities | 261,129 | 251,962 | ||||||
| NONCURRENT LIABILITIES | ||||||||
| Long-term debt, net | 255,524 | 265,927 | ||||||
| Operating lease liabilities, noncurrent | 160,458 | 148,553 | ||||||
| Deferred tax liability, net | 16,408 | 16,408 | ||||||
| Other noncurrent liabilities | 373 | 68 | ||||||
| Total noncurrent liabilities | 432,763 | 430,956 | ||||||
| Total liabilities | $ | 693,892 | $ | 682,918 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock – par value September 30, 2026 and December 31, 2025; 0 shares issued and outstanding as of September 30, 2026 and December 31, 2025 | — | — | ||||||
| Common stock – par value September 30, 2026 and December 31, 2025; 380,191 and 388,318 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 3,802 | 3,883 | ||||||
| Additional paid-in capital | 2,236,975 | 2,325,758 | ||||||
| Accumulated deficit | (748,386 | ) | (808,626 | ) | ||||
| Total stockholders' equity | 1,492,391 | 1,521,015 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,186,283 | $ | 2,203,933 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| TOTAL REVENUE | $ | 455,864 | $ | 363,809 | $ | 1,294,694 | $ | 1,042,090 | ||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Center costs, excluding depreciation and amortization shown separately below | 294,462 | 247,227 | 844,319 | 707,286 | ||||||||||||
| General and administrative expenses | 113,389 | 95,615 | 321,858 | 287,421 | ||||||||||||
| Depreciation and amortization | 14,936 | 13,557 | 42,503 | 41,319 | ||||||||||||
| Total operating expenses | $ | 422,787 | $ | 356,399 | $ | 1,208,680 | $ | 1,036,026 | ||||||||
| INCOME FROM OPERATIONS | $ | 33,077 | $ | 7,410 | $ | 86,014 | $ | 6,064 | ||||||||
| OTHER EXPENSE | ||||||||||||||||
| Loss on remeasurement of contingent consideration | (2,339 | ) | — | (2,370 | ) | — | ||||||||||
| Transaction costs | (510 | ) | — | (1,499 | ) | — | ||||||||||
| Interest expense, net | (2,491 | ) | (2,814 | ) | (6,916 | ) | (8,787 | ) | ||||||||
| Other expense | (334 | ) | (24 | ) | (609 | ) | (117 | ) | ||||||||
| Total other expense | $ | (5,674 | ) | $ | (2,838 | ) | $ | (11,394 | ) | $ | (8,904 | ) | ||||
| INCOME (LOSS) BEFORE INCOME TAXES | 27,403 | 4,572 | 74,620 | (2,840 | ) | |||||||||||
| INCOME TAX (PROVISION) BENEFIT | (5,018 | ) | (3,495 | ) | (14,380 | ) | 835 | |||||||||
| NET INCOME (LOSS) | $ | 22,385 | $ | 1,077 | $ | 60,240 | $ | (2,005 | ) | |||||||
| EARNINGS (LOSS) PER SHARE | ||||||||||||||||
| Basic | 0.06 | 0.00 | 0.16 | (0.01 | ) | |||||||||||
| Diluted | 0.06 | 0.00 | 0.15 | (0.01 | ) | |||||||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Basic | 381,214 | 386,963 | 383,976 | 385,672 | ||||||||||||
| Diluted | 391,223 | 388,895 | 391,180 | 385,672 | ||||||||||||
| NET INCOME (LOSS) | $ | 22,385 | $ | 1,077 | $ | 60,240 | $ | (2,005 | ) | |||||||
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| Unrealized losses on cash flow hedge, net of tax | — | (345 | ) | — | (929 | ) | ||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 22,385 | $ | 732 | $ | 60,240 | $ | (2,934 | ) | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | 60,240 | $ | (2,005 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 42,503 | 41,319 | ||||||
| Non-cash operating lease costs | 32,694 | 31,265 | ||||||
| Stock-based compensation | 53,117 | 57,997 | ||||||
| Amortization of discount and debt issue costs | 758 | 762 | ||||||
| Other, net | 4,356 | 1,440 | ||||||
| Change in operating assets and liabilities, net of businesses acquired: | ||||||||
| Patient accounts receivable, net | (24,381 | ) | 10,729 | |||||
| Prepaid expenses and other current assets | 33,546 | (10,410 | ) | |||||
| Accounts payable | (513 | ) | 2,868 | |||||
| Accrued payroll expenses | (14,146 | ) | (3,689 | ) | ||||
| Operating lease liabilities | (34,116 | ) | (35,829 | ) | ||||
| Other accrued expenses | 15,979 | (5,856 | ) | |||||
| Net cash provided by operating activities | $ | 170,037 | $ | 88,591 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (37,415 | ) | (25,214 | ) | ||||
| Acquisitions of businesses, net of cash acquired | (9,590 | ) | — | |||||
| Net cash used in investing activities | $ | (47,005 | ) | $ | (25,214 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Payments of long-term debt | (10,875 | ) | (5,438 | ) | ||||
| Taxes related to net share settlement of equity awards | (24,919 | ) | (8,607 | ) | ||||
| Proceeds from the exercise of stock options | 5,368 | — | ||||||
| Repurchases of common stock | (122,430 | ) | — | |||||
| Net cash used in financing activities | $ | (152,856 | ) | $ | (14,045 | ) | ||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (29,824 | ) | 49,332 | |||||
| Cash and cash equivalents - beginning of period | 248,642 | 154,571 | ||||||
| CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 218,818 | $ | 203,903 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest, net | $ | 12,298 | $ | 13,253 | ||||
| Cash paid for taxes, net of refunds | $ | 1,294 | $ | 1,564 | ||||
| SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Contingent consideration incurred in acquisitions of businesses | $ | 3,983 | $ | — | ||||
| Acquisition of property and equipment included in liabilities | $ | 4,546 | $ | 4,484 | ||||
| RECONCILIATION OFINCOMEFROM OPERATIONS TO CENTER MARGIN | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Income from operations | $ | 33,077 | $ | 7,410 | $ | 86,014 | $ | 6,064 | ||||||||
| Adjusted for: | ||||||||||||||||
| Depreciation and amortization | 14,936 | 13,557 | 42,503 | 41,319 | ||||||||||||
| General and administrative expenses(1) | 113,389 | 95,615 | 321,858 | 287,421 | ||||||||||||
| Center Margin | $ | 161,402 | $ | 116,582 | $ | 450,375 | $ | 334,804 | ||||||||
| (1) | Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees. |
| RECONCILIATION OF NETINCOME (LOSS)TO ADJUSTED EBITDA | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net income (loss) | $ | 22,385 | $ | 1,077 | $ | 60,240 | $ | (2,005 | ) | |||||||
| Adjusted for: | ||||||||||||||||
| Interest expense, net | 2,491 | 2,814 | 6,916 | 8,787 | ||||||||||||
| Depreciation and amortization | 14,936 | 13,557 | 42,503 | 41,319 | ||||||||||||
| Income tax provision (benefit) | 5,018 | 3,495 | 14,380 | (835 | ) | |||||||||||
| Loss on remeasurement of contingent consideration | 2,339 | — | 2,370 | — | ||||||||||||
| Stock-based compensation expense | 18,168 | 18,297 | 53,117 | 57,997 | ||||||||||||
| Loss on disposal of assets | 334 | 24 | 609 | 117 | ||||||||||||
| Transaction costs(1) | 510 | — | 1,499 | — | ||||||||||||
| Executive transition costs | — | 577 | — | 1,296 | ||||||||||||
| Litigation costs(2) | 34 | (70 | ) | (94 | ) | 1,088 | ||||||||||
| Strategic initiatives(3) | 1,741 | — | 2,738 | — | ||||||||||||
| Real estate optimization and restructuring charges(4) | (27 | ) | (6 | ) | (38 | ) | (103 | ) | ||||||||
| Amortization of cloud-based software implementation costs(5) | 428 | 444 | 1,269 | 1,199 | ||||||||||||
| Adjusted EBITDA | $ | 68,357 | $ | 40,209 | $ | 185,509 | $ | 108,860 | ||||||||
| (1) | Primarily includes capital markets advisory, consulting, accounting and legal expenses related to the underwritten public offerings of shares of our common stock by certain selling stockholders completed in the three and nine months ended September 30, 2026. |
| (2) | Litigation costs, net of insurance recoveries, include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case (e.g., complex class action litigation), (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy. During each of the three and nine months ended September 30, 2026 and 2025, litigation costs included cash expenses related to certain litigation matters, including a privacy class action litigation, and for the three and nine months ended September 30, 2025, a compensation model class action litigation. |
| (3) | Strategic initiatives consist of expenses directly related to evaluating and implementing a critical enterprise-wide scalable electronic health resources system in connection with our significant expansion. Strategic initiatives represents costs, such as third-party consulting costs and one-time costs, that are not part of our ongoing operations related to this enterprise-wide system. We considered the frequency and scale of this enterprise upgrade when determining that the expenses were not normal, recurring operating expenses. |
| (4) | Real estate optimization and restructuring charges consist of cash expenses and non-cash charges related to our real estate optimization initiative, which included certain asset impairment and disposal costs, certain gains and losses related to early lease terminations, and exit and disposal costs related to our real estate optimization initiative to consolidate our physical footprint during 2023. As the decision to close these centers was part of a significant strategic project driven by a historic shift in behavior, the magnitude of center closures was greater than what would be expected as part of ordinary business operations and did not constitute normal recurring operating activities. During the three and nine months ended September 30, 2026 and 2025, real estate optimization and restructuring charges consisted of certain gains and losses related to early lease terminations of previously abandoned real estate leases in 2023. |
| (5) | Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within general and administrative expenses included in our unaudited consolidated statements of operations and comprehensive income (loss). |
Investor Relations Contact Monica Prokocki VP of Finance & Investor Relations 602-767-2100 investor.relations@lifestance.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were LifeStance's third-quarter 2026 earnings results?
LifeStance reported $455.9 million in revenue and $22.4 million in net income for the quarter ended September 30, 2026. Revenue increased 25% from $363.8 million, while net income rose from $1.1 million. Diluted earnings per share increased to $0.06 from $0.00.
What is LifeStance's raised full-year 2026 outlook?
LifeStance expects 2026 revenue of $1.741 billion to $1.761 billion, Center Margin of $599 million to $613 million, and adjusted EBITDA of $242 million to $250 million. The company raised all three full-year ranges.
What drove LifeStance's third-quarter 2026 revenue and adjusted EBITDA margin growth?
LifeStance attributed revenue growth primarily to higher visit volumes from net clinician growth, improved clinician productivity and higher revenue per visit. The company linked adjusted EBITDA margin improvement to higher revenue per visit, lower center costs as a share of revenue and revenue growing faster than general and administrative expenses.